Legislature(2017 - 2018)GRUENBERG 120

03/08/2017 01:00 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 121 OCC. HEALTH AND SAFETY CIVIL PENALTIES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 20 SOLEMNIZE MARRIAGE: ELECTED OFFICIALS TELECONFERENCED
Moved CSHB 20(JUD) Out of Committee
         HB 121-OCC. HEALTH AND SAFETY CIVIL PENALTIES                                                                      
                                                                                                                                
2:31:15 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced that the  final order of business would be                                                               
HOUSE BILL NO.  121, "An Act relating to  occupational safety and                                                               
health  enforcement penalties;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
2:31:51 PM                                                                                                                    
                                                                                                                                
The committee took a brief at ease.                                                                                             
                                                                                                                                
2:32:49 PM                                                                                                                    
                                                                                                                                
BIANCA CARPENETTI,  Staff, Representative  Sam Kito,  III, Alaska                                                               
State Legislature, advised that the  legislation is a House Labor                                                               
and Commerce Standing  Committee by request of  the Department of                                                               
Labor &  Workforce Development (DLWD).   She  briefly paraphrased                                                               
the following:                                                                                                                  
                                                                                                                                
     House Bill 121 brings  Alaska's Occupational Safety and                                                                    
     Health (AKOSH) state plan  into compliance with federal                                                                    
     requirements,   ensuring   continued  eligibility   for                                                                    
     federal  grant funds  and  helping  to protect  workers                                                                    
     from workplace injuries, illnesses, and fatalities.                                                                        
                                                                                                                                
2:34:01 PM                                                                                                                    
                                                                                                                                
DEBORAH KELLY, Director, Division of Labor Standards and Safety,                                                                
Department of Labor & Workforce Development, paraphrased her                                                                    
written testimony as follows:                                                                                                   
                                                                                                                                
     I'm sure  you are all familiar  with OSHA [Occupational                                                                    
     Safety  and  Health   Administration].    Well,  Alaska                                                                    
     Occupational Safety  and Health or (AKOSH)  is Alaska's                                                                    
     state  plan.    This  means  that  Alaska  Occupational                                                                    
     Safety  and  Health  receives  federal  grants  and  is                                                                    
     responsible for  the safety  and health  standards that                                                                    
     protect almost all Alaskan workers.                                                                                        
                                                                                                                                
     ... A  state plan  such as  AKOSH must  be at  least as                                                                    
     effective   as  federal   OSHA,  so   Alaska's  program                                                                    
     develops  and implements  safety  and health  standards                                                                    
     that fit  Alaska's unique environment using  input from                                                                    
     Alaskan industries,  workers, and the public.   Federal                                                                    
     standards  are much  less  responsive  to local  needs.                                                                    
     Alaska's  program   also  provides   free  consultation                                                                    
     services  to  employers  with   an  emphasis  on  small                                                                    
     employers,  helping them  to  understand the  standards                                                                    
     and  implement  them  to  keep  their  employees  safe.                                                                    
     AKOSH  inspects all  private and  public workplaces  in                                                                    
     Alaska, with a few federal exceptions.                                                                                     
                                                                                                                                
2:35:21 PM                                                                                                                    
                                                                                                                                
     If, during the course of  an inspection, an employer is                                                                    
     found violating a safety or  health standard, AKOSH may                                                                    
     issue  a   citation  to  the  employer   that  includes                                                                    
     penalties.   The  maximum  penalties,  and one  minimum                                                                    
     penalty,  that AKOSH  may access  for various  types of                                                                    
     violations are set in Alaska's  statutes.  Now, maximum                                                                    
     penalties mean just that, the  maximums.  These are the                                                                    
     amounts  reserved for  the  most  egregious and  severe                                                                    
     cases.   The actual  penalties accessed  are calculated                                                                    
     based   on   numerous   factors  beginning   with   the                                                                    
     probability   of   an   injury  or   illness   actually                                                                    
     occurring, and  the severity of  the injury  or illness                                                                    
     that  could occur.   After  that, the  penalties reduce                                                                    
     based  on   numerous  factors.    The   biggest  single                                                                    
     reduction factor is business  size, small employers see                                                                    
     a standard  reduction of  60 percent  and even  more in                                                                    
     some cases.  Penalties are  also reduced for good faith                                                                    
     efforts  on the  part  of the  employer  to keep  their                                                                    
     employees safe,  as well as  the employer's  history of                                                                    
     violations  with AKOSH.   Penalties  can be,  and often                                                                    
     are,  reduced up  to 100  percent.   To illustrate  the                                                                    
     difference  between  the  statutory maximums  and  what                                                                    
     employers  actually pay,  we looked  at the  difference                                                                    
     between penalties collected in  FY2016, and the maximum                                                                    
     amount  that   AKOSH  could   have  assessed   for  all                                                                    
     violations.   So,  for FY16  --  2016, AKOSH  collected                                                                    
     roughly  6 percent  of the  statutory  maximum for  the                                                                    
     violations  cited.    This  is not  a  fluke,  it  just                                                                    
     reflects  the  built-in  process  that  protects  small                                                                    
     businesses, and protects the  majority of employers who                                                                    
     hard  to  keep  their  employees safe.    So,  in  2015                                                                    
     Congress  passed  an  Act requiring  many  agencies  to                                                                    
     adjust penalties for inflation  going back to 1990, and                                                                    
     then to continue to adjust  those penalties yearly with                                                                    
     the  consumer price  index.   OSHA complied  and raised                                                                    
     their penalties  in July of  last year, Alaska  has six                                                                    
     months  to come  into compliance  with federal  changes                                                                    
     like these,  and as of January  1, 2017, we are  out of                                                                    
     compliance.   So why  does this matter?   A  failure to                                                                    
     comply  will  risk  most  of the  over  $2  million  in                                                                    
     federal  grant   funds  we  receive  every   year,  and                                                                    
     eventually   will   risk    a   federal   takeover   of                                                                    
     jurisdiction.   This  means federal  OSHA will  come in                                                                    
     and  enforce the  higher  penalty  amounts anyway,  the                                                                    
     over $1  million in estimated yearly  penalties that we                                                                    
     will  bring  in  will  go  to  the  federal  government                                                                    
     instead of to the state  general fund.  Businesses will                                                                    
     face the  burden of out-of-state proceedings  when they                                                                    
     disagree with  citations, and we  will lose  the safety                                                                    
     and health standards developed  locally to fit Alaska's                                                                    
     unique conditions,  such as logging,  oil and  gas, and                                                                    
     temporary   labor  camp   standards.     And,   Alaskan                                                                    
     businesses  will  lose the  high  level  of input  they                                                                    
     currently have in the development  of safety and health                                                                    
     standards.  Loss of state  jurisdiction would also mean                                                                    
     that state  and local  government employees  would lose                                                                    
     their work  -- workplace safety and  health protections                                                                    
     since  federal OSHA  does  not  have jurisdiction  over                                                                    
     those public employees.                                                                                                    
                                                                                                                                
2:38:49 PM                                                                                                                    
                                                                                                                                
     The fact  is that local  enforcement works.   AKOSH has                                                                    
     concentrated  on  the  transportation  and  warehousing                                                                    
     industry which saw  over an 18 percent  decline in lost                                                                    
     time  injury rates  last  year.   Our  emphasis in  the                                                                    
     construction  industry has  also  paid  off, lost  time                                                                    
     industry  -- injuries  in that  industry  fell over  32                                                                    
     percent  last  year.   The  10  year averages  for  our                                                                    
     emphasis industries show a  long-term decline in injury                                                                    
     and illness  rates.  And,  in fact, lost  time injuries                                                                    
     and  illnesses  for   working  Alaskans,  overall,  has                                                                    
     fallen by  over 50 percent in  the last 10 years.   The                                                                    
     payoff  is huge  for  businesses who  save on  workers'                                                                    
     compensation costs,  and for  families and  workers who                                                                    
     get to go home safe every day.                                                                                             
                                                                                                                                
     House Bill 121, is a  bill to bring Alaska Occupational                                                                    
     Safety and  Health in  compliance.   No more,  no less.                                                                    
     The  bill   requires  the   Department  of   Labor  and                                                                    
     Workforce Development to  adopt maximum penalty amounts                                                                    
     by  regulation   and  limits   those  amounts   to  the                                                                    
     corresponding federal amounts  for each violation type.                                                                    
     This  simply  allows  the  department  to  comply  with                                                                    
     federal law and stay compliant  -- in compliance as the                                                                    
     consumer price index  adjusts from year to  year.  This                                                                    
     will preserve  our state  plan and  ensure that  we can                                                                    
     continue in  our effort to reduce  injuries, illnesses,                                                                    
     and fatalities for Alaskan workers.                                                                                        
                                                                                                                                
2:40:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP   surmised  that  this   federal  compliance                                                               
request  was asked  of all  50 states  to stay  current with  the                                                               
federal penalty  schedule.  He  asked whether Alaska  must comply                                                               
by law.                                                                                                                         
                                                                                                                                
MS. KELLY responded that there are 26 state plans, including                                                                    
Porto Rico and perhaps one other territory.  She advised that                                                                   
the  federal   jurisdiction  states  had  already   raised  their                                                               
penalties,  and the  26 state  plans  are required  to come  into                                                               
compliance as  a condition of their  state plan, which was  a law                                                               
passed in 2015.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  KOPP surmised  that by  not adopting  the updated                                                               
schedule, Alaska would then fall under federal jurisdiction.                                                                    
                                                                                                                                
MS.  KELLY answered  that the  failure to  at least  maintain the                                                               
same  penalties as  the federal  OSHA would  result in  a federal                                                               
jurisdictional takeover,  and many  states are dealing  with that                                                               
now.  Although,  she explained, as long as  Alaska makes positive                                                               
progress  toward  adopting  the  federal penalties,  it  will  be                                                               
recognized because the legislative process does take time.                                                                      
                                                                                                                                
REPRESENTATIVE   KOPP  pointed   out   that   Alaska  has   AKOSH                                                               
regardless, and asked "Do we do  business with the devil we know,                                                               
or the devil we don't -- with state employees or with the feds?"                                                                
                                                                                                                                
MS. KELLY responded that this  issue was debated around 1999, and                                                               
many local  businesses and industry  representatives came  out to                                                               
support the Alaska plan.  Ms.  Kelly said she would paraphrased a                                                               
quote  from a  representative of  the  industry at  that time  as                                                               
follows: "AKOSH may  be SOB's, at least they  are Alaskan SOB's."                                                               
She  remarked "And,  that's a  fact,"  people can  talk with  the                                                               
division   on  developing   standards  that   work  for   Alaskan                                                               
industries and Alaskan businesses.                                                                                              
                                                                                                                                
2:43:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX surmised  that  in the  event the  federal                                                               
government  takes over,  Alaskan residents  would be  working for                                                               
the federal  government and administration  and wouldn't  be "our                                                               
SOB's?"   She asked the amount  of money the state  would save by                                                               
calling  the federal  government's  bluff and  letting them  have                                                               
jurisdiction.                                                                                                                   
                                                                                                                                
MS. KELLY agreed  that on site compliance  officers under federal                                                               
jurisdiction  would   be  Alaskan   residents,  but   the  people                                                               
overseeing those residents  would not be Alaskans.   In the event                                                               
an  employer appealed  a  citation  it would  not  be an  Alaskan                                                               
process as it  would take place with an  administrative law judge                                                               
out-of-state.   More  importantly,  she  explained, Alaska  would                                                               
lose numerous local  and state standards specific to  Alaska.  In                                                               
response to the  amount of money Alaska would save,  she said she                                                               
would perform research and get back to the committee.                                                                           
                                                                                                                                
2:45:54 PM                                                                                                                    
                                                                                                                                
SAM  KITO,  III, Alaska  State  Legislature,  added that  another                                                               
dynamic  to consider  is that  Alaska could  not expect  that the                                                               
federal government  would open an  office in Alaska.   Therefore,                                                               
it is  likely that the  Alaska office of Occupational  Safety and                                                               
Health  would not  be  managed by  Alaskan  residents, and  would                                                               
possibly be out  of San Francisco or Seattle  because the federal                                                               
government was  also experiencing  budgetary constraints.   Also,                                                               
in the event the legislature  lets the Alaska Occupational Safety                                                               
and Health  revert to the  federal government, Alaska  would lose                                                               
the protections it currently has  for state employees not covered                                                               
under a federal plan.                                                                                                           
                                                                                                                                
2:47:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked whether  it is  true the  fees are                                                               
being removed from statute and put into regulations.                                                                            
                                                                                                                                
REPRESENTATIVE KITO  responded that HB 121  allows the Department                                                               
of Labor & Workforce Development  to have the statutory authority                                                               
to  produce regulations  allowing continued  compliance with  the                                                               
federal  government's  requirements,  of which  possibly  changes                                                               
annually.  He opined that  probably the legislature does not want                                                               
to come  back here  and establish  those maximum  standards every                                                               
year because  they are indexed  to inflation.   In the  event the                                                               
legislature allows  the department  the regulatory  authority, it                                                               
can  keep  up  with  the federal  changes  with  regulations,  as                                                               
opposed  to  coming  back  to  the  legislature  every  year,  he                                                               
described.                                                                                                                      
                                                                                                                                
2:48:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD offered that "where  the rub hits with me                                                               
is  I don't  want  any --  any less  authority"  and this  shifts                                                               
authority from the legislature to  the executive branch "that has                                                               
a whole  lot of power." and  that she is a  local control person.                                                               
She then asked whether that was his understanding.                                                                              
                                                                                                                                
REPRESENTATIVE  KITO answered  that that  was his  understanding.                                                               
As  a  sitting legislator,  he  pointed  out, there  are  various                                                               
concerns as  to whether or  not to put automatic  increments into                                                               
state law, except in this  case, the federal government does have                                                               
an automatic increment  and this does take control  away from the                                                               
legislature  to adjust  every year.   He  asked whether  this was                                                               
something the legislature  really wants to deal  with every year,                                                               
given it has  the budget and such to deal  with.  Statutorily, he                                                               
acknowledged,  he does  not know  of another  way to  effectively                                                               
deal  with   the  department   meeting  compliance,   unless  the                                                               
legislature goes in  and far exceeds the maximums  of the federal                                                               
government in  the hopes it wouldn't  catch up with Alaska  for a                                                               
few years  and allow  the department to  work below  that number.                                                               
He  described  that  it  was  sloppy  because  it  establishes  a                                                               
standard that  a legislature in two  to four years down  the road                                                               
may have  forgotten about,  thereby, leaving  a number  out there                                                               
that people may not change, and  possibly may not remember why it                                                               
was  established.   He expressed  that it  is important,  in this                                                               
situation, to allow the department that flexibility.                                                                            
                                                                                                                                
2:51:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   offered  concern   about   constantly                                                               
changing fees and yielding to  the federal government rather than                                                               
keeping  things  local.    She   offered  further  concern  about                                                               
increasing  penalties and  how it  would  impact businesses  when                                                               
Alaska was in a recession.                                                                                                      
                                                                                                                                
2:52:17 PM                                                                                                                    
                                                                                                                                
MS. KELLY responded to Representative Reinbold as follows:                                                                      
                                                                                                                                
     This bill  is very strictly  written, so that  while it                                                                    
     is moved to regulations,  the department is really only                                                                    
     given one option  which is to set  the federal amounts,                                                                    
     and no more.  So, that does limit that.                                                                                    
                                                                                                                                
     But,  I  would like  to  speak  to your  concern  about                                                                    
     raising   penalties  because   you're  right.     Quite                                                                    
     frankly,  all  these  penalties will  automatically  --                                                                    
     this first  adjustment will be  a 78  percent increase.                                                                    
     And, I  can't sugarcoat  that, and  keep in  mind these                                                                    
     are maximums, these are not  the actual penalties.  So,                                                                    
     when you  see those  numbers, that sticker  shock isn't                                                                    
     what most businesses are seeing when a cost shows up.                                                                      
                                                                                                                                
     That  being said,  it --  it's a  tough call,  but it's                                                                    
     either us  issuing those higher penalties,  or it's the                                                                    
     federal government  issuing those higher  penalties and                                                                    
     taking  that  money  back  to  the  federal  government                                                                    
     instead  of depositing  it as  into  the state  general                                                                    
     fund.                                                                                                                      
                                                                                                                                
     Second of  all, I --  I have several studies  here that                                                                    
     show that an employer who  receives a penalty from OSHA                                                                    
     or from  AKOSH, in  this case,  actually sees  a pretty                                                                    
     large savings  over the next  several years  in reduced                                                                    
     injury  and illness  and;  therefore, reduced  workers'                                                                    
     compensation  costs  that  far  exceed  the  amount  in                                                                    
     penalties  that they  paid.   So,  there's actually  an                                                                    
     economic   benefit  for   an   employer  paying   those                                                                    
     penalties because it -- I  mean, some employers, a few,                                                                    
     actually  see these  visits  from OSHA  as  a low  cost                                                                    
     consultation service.  It may  have been involuntary --                                                                    
     involuntary,  but in  the  end, they  are  able to  get                                                                    
     assistance  and   additional  knowledge  on   what  the                                                                    
     requirements  are   and  how   to  better   keep  their                                                                    
     employees safe.  So,  those workers' compensation costs                                                                    
     are  really much  higher.   The cost  of an  injury and                                                                    
     illness are way higher than what the penalties are.                                                                        
                                                                                                                                
2:54:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  agreed that it  as sticker shock.   Now,                                                               
she said, the  big gun was being used by  increasing penalties by                                                               
78  percent, and  she had  received many  complaints about  these                                                               
agencies being trigger happy.                                                                                                   
                                                                                                                                
2:54:53 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN commented  that the  bill  presents an  interesting                                                               
situation  in  that the  federal  government  doesn't state  that                                                               
Alaska  must raise  its statute,  it leaves  it up  to Alaska  to                                                               
choose with the caveat that  if Alaska doesn't follow the federal                                                               
government  it  will come  in  and  take  over.   The  price  for                                                               
maintaining some  degree of  autonomy is that  Alaska must  be in                                                               
compliance with the  federal limits.  The  legislature could make                                                               
the  choice  to  let  the  federal government  come  in  but,  he                                                               
surmised,  most  of  the  public  would  prefer  the  legislature                                                               
maintain  control  of this  particular  element,  and he  offered                                                               
concern about  the cost  of compliance.   He  then referred  to a                                                               
death at an Anchorage construction  site because the employer was                                                               
grossly out-of-compliance  and when looking at  those high fines,                                                               
they were appropriate.   Everyone wants employers  to succeed but                                                               
not  by  putting  their  workers   in  dangerous  situations,  he                                                               
stressed.                                                                                                                       
                                                                                                                                
2:56:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  referred to the statement  that the state                                                               
had  only  one   option  in  dealing  with   the  maximum  amount                                                               
established on the  federal side, and noted that  the language in                                                               
the bill  read as  follows: "not more  than the  maximum amount."                                                               
He commented that it would be  appealing to save lots of money by                                                               
eliminating the  state work if  the state was just  doing exactly                                                               
what the federal government would be  doing anyway.  In the event                                                               
the state  has another  governmental partner  willing to  do work                                                               
for the  state, he said he  is all for it  in some circumstances.                                                               
He then asked  whether the state was expected to  access fines at                                                               
that maximum  amount if the  department or other  persons setting                                                               
those  amounts chose  to  set a  low amount.    He further  asked                                                               
whether the federal government would  come in and say that Alaska                                                               
was  out of  compliance because  it was  not fining  enough, even                                                               
though the legislature  gave statutory authority to  fine to that                                                               
maximum amount.                                                                                                                 
                                                                                                                                
2:57:34 PM                                                                                                                    
                                                                                                                                
MS. KELLY  addressed the first  part of  Representative Eastman's                                                               
question, and  related that she  does not believe  the department                                                               
was doing  exactly what  the federal  government was  doing, such                                                               
that the  department develops local  safety and  health standards                                                               
unique  to Alaska's  industries.   It also  provides coverage  to                                                               
both state  and local  public employees  that federal  OSHA would                                                               
not provide, and  as far as the ability of  the commission to set                                                               
lower  amounts, Representative  Eastman was  correct.   This puts                                                               
the  department  between two  limits,  and  the Alaska  statutory                                                               
limit  would  be   the  higher  limit,  and   the  federal  grant                                                               
requirements and  jurisdictional requirements would be  the lower                                                               
limit.   Therefore,  if a  commissioner did  decide to  set lower                                                               
amounts by regulation, then the  federal equivalents would decide                                                               
that Alaska  was not complying  with its requirements.   She said                                                               
that the division ran some numbers  and assessed that it was less                                                               
than 10  percent of the  maximum penalties.  She  reiterated that                                                               
the numbers  of the  sticker shock  are theoretical  maximums and                                                               
reserved  for egregious  cases,  such as  the  case Chair  Claman                                                               
referred to earlier.  She  explained that that situation was what                                                               
the statutory  maximums were there  for, and a situation  such as                                                               
that would be  the only time the division would  assess such high                                                               
penalties.                                                                                                                      
                                                                                                                                
2:59:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS asked  the industry's  perspective                                                               
on  this  because  he  did   not  see  documents  in  support  or                                                               
opposition.                                                                                                                     
                                                                                                                                
MS. KELLY  responded that the  perspective from the  industry was                                                               
that no  one loves  OSHA, but in  1999 the  overwhelming response                                                               
was in favor  of Alaska jurisdiction.  In  addition, the division                                                               
does provide free consultation service  wherein it shows up to an                                                               
employer, with  no penalties or  citations involved,  and assists                                                               
the employer in  coming into compliance and learning  how to keep                                                               
their employees  safe and healthy on  the job.  She  described it                                                               
as  a popular  program  because  it helps  folks  in the  seafood                                                               
processing  industry, in  particular,  come  into compliance  and                                                               
determine  how to  keep their  people  safe in  that high  hazard                                                               
industry.   The OSHA  is not  popular, but  federal OSHA  is less                                                               
popular than AKOSH, she remarked.                                                                                               
                                                                                                                                
3:01:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KREISS-TOMKINS   requested   the   quantity   of                                                               
consultations AKOSH performs annually.                                                                                          
                                                                                                                                
MS. KELLY  replied that in  addition to consultation,  AKOSH also                                                               
offers  training to  the public  and employers  which reaches  an                                                               
additional  set of  people.    She said  she  could provide  this                                                               
information after the meeting.                                                                                                  
                                                                                                                                
3:02:01 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN advised Ms. Kelly  that she could provide the answer                                                               
to  his   query  at  the   next  meeting.    He   continued  that                                                               
Representative Reinbold  raised an interesting question  of going                                                               
through the  regulation process and, he  commented, that "there's                                                               
a  level that  what we're  essentially  doing is  saying, in  the                                                               
legislative  sense,  'Uncle,  we'll  -- we'll  use  your  maximum                                                               
rates.'"   He described a component  in which one might  ask, why                                                               
the  legislature   needs  to  go   through  the  exercise   of  a                                                               
regulation, why  not just have  a statutory provision  which read                                                               
that  the  Alaska   maximum  rate  would  be   the  maximum  rate                                                               
established  by whatever  federal statute  setting this  up.   At                                                               
some  point, he  asked,  why doesn't  the  legislature just  say,                                                               
"Uncle as  a matter  of Alaska statute?"   Thereby,  he remarked,                                                               
the  regulatory   process  would   be  unnecessary   because  the                                                               
legislature  in  recognizing  the federal  government's  maximum,                                                               
would be the maximum Alaska would have.                                                                                         
                                                                                                                                
3:03:20 PM                                                                                                                    
                                                                                                                                
MS. KELLY  explained that  it was a  balancing test  the division                                                               
performed while it  looked at what other states  were working on,                                                               
and the division considered what  might be the most acceptable to                                                               
folks.    Quite  frankly,  she advised,  the  division  ended  up                                                               
balancing on the  side of the regulatory process, but  it was not                                                               
opposed to putting it into the statute.                                                                                         
                                                                                                                                
REPRESENTATIVE  REINBOLD  reiterated  that  it  is  critical  the                                                               
legislature writes  the statutes, determines the  budget, and not                                                               
just  at the  beck  and  call of  the  federal  government.   She                                                               
pointed  out that  the legislature  needs to  keep as  much local                                                               
control and state control as possible,  and she agreed that it is                                                               
a balancing act.                                                                                                                
                                                                                                                                
3:05:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP  surmised  that  the  committee  was  simply                                                               
adopting a  maximum penalty  schedule, and  nothing at  all about                                                               
what the  discretion was in that  range.  He said  he understands                                                               
that there is  an approximate 60 percent discount  of the penalty                                                               
schedule for small businesses as a base line.                                                                                   
                                                                                                                                
3:05:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KITO   remarked   that   the   legislature   was                                                               
establishing, either through regulation  or however the committee                                                               
ends  up  doing  this  bill,  a  federal  maximum  penalty.    He                                                               
reiterated  Ms.  Kelly,  and  said that  even  with  the  current                                                               
penalty system, the assessments were  less than 10 percent of the                                                               
maximums.                                                                                                                       
                                                                                                                                
[HB 121 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB121 ver O 2.27.17.PDF HJUD 3/8/2017 1:00:00 PM
HJUD 3/13/2017 1:00:00 PM
HB 121
HB121 Sponsor Statement 3.6.17.pdf HJUD 3/8/2017 1:00:00 PM
HJUD 3/13/2017 1:00:00 PM
HB 121
HB121 Sectional Analysis 3.6.17.pdf HJUD 3/8/2017 1:00:00 PM
HJUD 3/13/2017 1:00:00 PM
HB 121
HB121 Supporting Document-Federal Memo to State 2.23.17.pdf HJUD 3/8/2017 1:00:00 PM
HJUD 3/13/2017 1:00:00 PM
HB 121
HB121 Supporting Document-OSHA Fact Sheet 3.6.17.pdf HJUD 3/8/2017 1:00:00 PM
HJUD 3/13/2017 1:00:00 PM
HB 121
HB121 Fiscal Note DOLWD-OSH 2.24.17.pdf HJUD 3/8/2017 1:00:00 PM
HB 121
HB020 Draft Proposed CS ver. J 3.1.17.pdf HJUD 3/8/2017 1:00:00 PM
HB020 Amendments 1-13 3.7.17.pdf HJUD 3/8/2017 1:00:00 PM
HB 20
HB020 Supporting Document-Emails of Support 3.7.17.pdf HJUD 3/8/2017 1:00:00 PM
HB 20